THE ENERGY ISSUE WITH HARBOURS - CASE STUDY - THE SCALLOWAY HARBOUR

E-Harbours towards sustainable, clean and energetic

innovative harbour cities in the North Sea Region

ACKNOWLEDGEMENT

This report acknowledges the support and input of many experts. We thank all those who have provided input and contributions and helped to shape the document. Thanks also to The Interreg IVB North Sea Region Programme for supporting this project.

GLOSSARY

2 CO2 Carbon Dioxide Gas m Square meter

kWh kilowatt hours of energy l liter

MWh Megawatt hours of energy NSR North Sea Regions (1MWh = 1000kWh) EU European Union GWh Gigawatt hours of energy (1GWh = 1000MWh)

t Metric Tonne

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EXECUTIVE SUMMARY

This report has been carried out as part of a pan This document describes the Scalloway Harbour European project called E-Harbours, E-Logistics Showcase; a harbour located in the in NSR Harbour Cities, awarded by the Interreg Islands. This Showcase is one of the seven (07) IVB North Sea Region Programme. E-harbour project showcases. A description of the Scalloway Harbour main activities is In this report, an overview of the energy issue documented and the different organisations found in harbours in general, and in small to operating in and within the harbour medium harbours in particular, is discussed. summarised.

KEY FINDINGS

 Scalloway Harbour is a key showcase in the  Heating and cooling is one of the major E-Harbour project. expenditures within a harbour.  Scalloway harbour displays a variety of  Currently there is no widely recognised businesses and that a harbour can be policy or European-wide agreement on considered as clusters of organisations greening harbours. feeding one another.  Harbours are energy intensive nodal points and highly dependent on energy for survival.

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TABLE OF CONTENTS

Acknowledgement ...... 2 Glossary ...... 2 Executive Summary ...... 3 Key findings ...... 3 Introduction ...... 5 Aims ...... 6 Objectives ...... 6 What is The Energy problem in Harbours and Harbour cities? ...... 7 Scalloway Harbour ...... 9 Entities within Scalloway Harbour ...... 10 Scalloway Harbour office ...... 11 Scottish Sea FarmS ...... 12 Skretting ...... 13 Net ServiceS Shetland ...... 14 Hunter Fish ...... 15 QA Fish ...... 16 LHD Ice factory ...... 16 Disclaimer ...... 18

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INTRODUCTION

Harbours are widely recognised as an showcase intends to devise a better important, if not a key engine of any country’s understanding of the operation of a small or island’s economy. North Europe hosts some harbour setup and how this can lead to the of the largest harbours in the world, which introduction of novel energy policies across the allows the supply of countries and cities in and North Sea Region (NSR). The ultimate goal of around the European Continent. At the same the Showcase is to devise, test and disseminate time, Europe as a whole, hosts thousands of a data monitoring strategy as applied to small to medium harbours, which face similar Scalloway Harbour so that, in the future, the challenges to their counterpart large scale findings can be applied to other harbours of harbour operations. similar size, but also large scale harbours at European level and beyond. The North Sea based Harbour cities are subjected to an unprecedented level of Through this report, harbour masters, harbour difficulties arising from many different horizons owners, harbour policy makers and harbour including a record vessel traffic, rise in energy business organisations will be able to learn what needs, sharp increase in energy costs and the different types of organisations can be intense worldwide pressure on reduction in found in a small harbour set up. This will pollution and emissions. All of these pressures support them to identify their key future mean that harbours are now being targeted by harbour policies. many to find new and effective solutions to lead to better, more effective and sustainable This report is therefore divided into three (03) harbours. sections. The first section of the report provides the aims and objectives of the Showcase. The This report aims to provide and disseminate the second section describes the different energy overall NSR located harbour energy issue with a issue as found in a harbour setup. The third and particular overview of the Scalloway Harbour final section describes the Scalloway Harbour Showcase, which is one of seven (07) showcases with its different organisations and operation. of the E-harbour project. The objective of this showcase is unique as it will have a long lasting impact on the wider harbour community. This

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AIMS

The E-harbours Project as a whole aims to This documents aims at providing an idea as to create a lasting change towards sustainable what type of facilities can be found in a small to energy logistics for North Sea Region harbour medium harbour set up, by summarising each cities. It aims at setting innovative energy entity located at Scalloway. standards to create a transformation of the energy network in harbour areas. The summary of the different facilities, as found in this report, can then be used by decisions This report intends to briefly describe the makers to develop future harbour’s policies for energy issue facing harbours in the North Sea small to medium harbours (and in many cases Region (NSR). More specifically this report extrapolate the policies to larger harbours). describes one of the Shetland Islands’ most well known harbours: Scalloway Harbour.

OBJECTIVES

After reading this report, the reader should be 2. Have a clearer understanding of the able to: different types of organisations available in a small to medium harbours. 1. Understand the major challenges/problems/ difficulties for harbour cities in terms of 3. Understand which types of organisations energy consumption and environmental uses substantial energy and the reasons impact. why.

4. Have a clear overview of the Scalloway Harbour activities.

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WHAT IS THE ENERGY PROBLEM IN HARBOURS AND HARBOUR CITIES?

The Kyoto protocol was undersigned by a large clearly a problem for harbour based number of countries to significantly reduce CO2 organisations as, if the energy costs continue to emissions compared to 1990 levels. Since then, rise, could put these organisations out of European Union’s have published targets to cut business.

CO2 emissions by 20% by 2020 (compared with 1990 levels) and to increase electrical capacity To this end, it is obvious that the use of energy from renewable energy to 20%. in the harbour cities can be very intense, and in many instances energy efficiency measures Some NSR countries like , Denmark and remain low due to the use of ‘inefficient’ have already overwhelmed other EU industrial machineries. In addition, though the countries and have set new targets for 2020. For Government’s renewable targets have been instance, Scottish targets for electrical clearly stated, the share of renewable energy generation is to have a record 100% of sources in a harbour set up is still very low. electricity consumption from renewables by 20201. Therefore, one can conclude that some of the main issues in a harbour are four fold: (a) The harbour areas of the NSR are critical nodal economic (the energy costs are too high and points supporting international transport continue to rise), (b) machines are in many networks, and preferred locations for a wide cases not efficient (older machines not being variety of industries. These areas transport and replaced often), (c) CO2 emissions, as well as transfer large amounts of commodities, other greenhouse gases, are excessive (high including energy related products like coal and consumption means high emissions), and (d) oil, and play a central role in the energy system there is a lack of information as of what can be of European countries. done to change the situation (harbours have not been a real targets for Government policy Though harbours are key nodal points for implementation for renewable and energy transporting energy type products, they are also efficiency). large consumers of energy, hence high emitting nodal points too. Factually, one can see that one In summary, there is an urgent need to of the highest outgoing cost for a harbour is improve the energy credentials of harbours, energy, which is directly associated with the which shall include a combination of energy activities in and around the harbour. This is efficiency measure, renewable energy, smart grid and others. If no action is taken, then this could put many harbour organisations at

financial risk and in jeopardy to losing business due to uncompetitive bids and/or costs. 1 Draft Electricity Generation Policy Statement (EGPS) November 2010.: Scottish government http://www.scotland.gov.uk/Topics/Business- Industry/Energy

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Harbours to become uncompetitive if no action is taken to reduce energy costs

Scotland has large number of harbours, with its in essence be used as a showcase to clearly majority being small to medium in size. Amongst define and investigate the different type of these harbours, Scalloway is a good example of energy sources (electrical, oil, etc), to quantify a small to medium sized harbour situated on the the energy profiles and CO2 issues related to a west side of the Shetland Islands. Figure 1, harbour. The findings from the showcase can illustrates an aerial view of the Scalloway then be used to devise a potential set of Harbour. scenario solution(s) for the uptake of smart grid and renewable energy solutions into a harbour The main characteristics of the Scalloway site area, thereby reducing emissions and are that it is a relatively small to medium size dependence on brown electricity, while harbour associated with a large variety of reducing in parallel the energy expenditures. activities. This makes the harbour a site of The findings can also support larger harbours in particular interest for investigating the relation defining their energy strategies. between energy and a harbour. Scalloway, can

Figure 1 - Panoramic view of Scalloway Harbour2

2 http://www.shetland.gov.uk/ports/scalloway/

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SCALLOWAY HARBOUR

Scalloway Harbour is an important Scotland The aim of the strategy would be to collect based fishing harbour situated on the west side energy data and use the findings to of the Shetland Islands. It is the third largest reduce/stabilise the harbour’s energy harbour in the . Figure 2 shows the consumption, thereby increasing the location of the harbour on the Shetland sustainability of the Harbour. mainland. Scalloway Harbour is the first selected The intensity and the large variety of activities in showcase within the E-Harbours Project that is a relative small footprint make Scalloway able to assess and potentially improve the Harbour a unique case study for the environmental and energetic condition of the investigating the energy issues encountered entire harbour. All other showcases within the within a harbour setup through the E-harbour focus on small areas of harbours due development of an energy monitoring strategy. the very large footprint sizes.

Figure 2 – Shetland Island and Scalloway Harbour3

3 http://maps.google.co.uk

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Despite its small size, counting a footprint of has been found to be 1.8 GWh/year. Heating only 50,000 m2, it was found that Scalloway fuel is another large energy source used within Harbour is an intensive energy consumer. Being the harbour, with average annual energy a high energy consumer, the harbour related consumption for heating oil typically around carbon emissions are, in turn, extremely high. 643 MWh/year. As result, the overall CO2 To put this into context, the average yearly emission for stationary energy consumption electricity consumption for Scalloway Harbour has been found to be 1350 t/year.

Scalloway harbour consumes 1.8GWh of electrical energy per year

Scalloway harbour consumes 363MWh of heating energy per year

Scalloway harbour emits 1350 tonnes/year of CO2

Looking at the aforementioned large electrical on comprehension of the type of organisations and heating energy consumption figures for operating in a harbour that a mental picture of such a small to medium harbour, one needs to the different energy requirements for each understand the energy impact, usage and/or business could be depicted. The sections below pattern of each organisation in this harbour provide such a summary and understanding of setup. To do so, it is initially critical to the different organisations as found in understand the different types of organisations Scalloway Harbour. that are operating within the harbour. It is only

ENTITIES WITHIN SCALLOWAY HARBOUR

In essence, Scalloway harbour regroups several within the site. Colour codes are used to identify private organisations and a harbour head office. the different businesses with their associated Figure 3 below illustrates an aerial3 view of the nomenclature. harbour with the different businesses operating

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Figure 3 – Scalloway Harbour`s organisations

Scalloway Harbour consists of seven main 2. Scottish Sea Farms (SSF) organisations. Below is the list of those 3. Skretting organisations, each of which is described in the 4. Net Services Shetland Ltd (NSS) following sections: 5. LHD Ice Factory 6. Hunter Fish 1. Scalloway Harbour Office 7. QA Fish

SCALLOWAY HARBOUR OFFICE

Scalloway Harbour office is the main authority system for locating, identifying and tracking of the harbour; it is responsible for the marine vessels. operation and traffic control of the harbour. Regarding the on-land activity, Scalloway Scalloway Harbour office controls both land and Harbour office manages the following facilities: sea traffic on the site. The main office is equipped with the latest communication and  Fish market: it is dedicated to wholesale radar systems for safe navigation in the harbour trade between fishermen and fish merchants. area, such as the Automatic Identification The fish market is equipped with an intensive System (AIS) that provide an accurate navigation cold storage facility in order to preserve the quality of the fish during the storage period.

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 Shore power: the pier is equipped with a In addition to the above, the Scalloway Harbour system of bollards and an electrical power office is equipped with a weather station that source that are used to power marine vessels monitors continuously weather parameters while moored at the harbour. since 2008; such as wind speed, wind direction  Fuelling station: the harbour is equipped and tidal height. with a fuelling station for dispensing oil to the marine vessels.

Figure 4 – Fish Market

SCOTTISH SEA FARMS

Scottish Sea Farms (SSF) is one of Scotland's  Fish processing plant: this facility deals leading fish farming businesses. It is the biggest with the processing of fish and the preparation private organisation within the harbour in terms of dispatched lots to the market. Figure 5 of size, facility and energy consumption. illustrates the Scottish Sea Farms facility located Scottish Sea Farms support and run the at Scalloway Harbour. Technologically advanced complete supply chain for the production of industrial machines are used for gutting and salmon. From the growing of the salmon alevin filleting the salmon. This facility includes an ice in farmed cages around Shetland, to the final production system used during the processing fish processing. stage, a box packaging system and several cold store facilities for storing fish for short periods Scottish Sea Farms is based in Scalloway before dispatch. Harbour with two main facilities:

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 Marine services plant: this facility provides vehicles needing repair. In addition, a large technical and mechanical support for boats and storage facility is available for storing nets for salmon cages and food.

Figure 5 – Scottish Sea Farm facility at Scalloway Harbour

Scottish Sea Farms is not only the highest and produces fish meal as base for domestic energy consumer of the harbour, but it is also animals` food and high-quality organic fertiliser. the main waste producer too. Substantial fish waste is produced at the fish processing plant. Scottish Sea Farms is equipped with a water This waste is then periodically collected to be treatment plant that is able to recover and used in the fish meal factory in , on the purify any impurities in the waste processing east side of Shetland. Fish waste is treated in water before the final disposal. order to extract oil (usually used for cosmetics)

SKRETTING

Skretting is the UK and Ireland's largest for fish food. The company’s facilities are shown aquaculture feeds producer. The company in Figure 6. The energy consumption of Skretting supplies mainly salmon and trout feeds for most is fairly small when compared to the other of the fish factories based in the Shetland industrial premises within the Harbour. This is Islands. Skretting is based on the west side of due to the fact that that no industrial processing Scalloway Harbour with a large storage facility is required for storing the food.

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Figure 6 – Skretting facilities at Scalloway Harbour

NET SERVICES SHETLAND

Net Services Shetland is based in the northern of net and net services for most of the fish farm side of Scalloway Harbour. This business market in the Shetland Islands. The Figure specialises on making nets for the fish farming below (7) illustrates some of Net Services industry. The organisation is the major supplier facilities.

Figure 7 – Net Services Shetland facility; sewing facility (left), drying room (right).

This business has a wide range of activities, from organisation can be grouped into two main the complete construction of nets, to the facilities: periodical maintenance of used fish nets. The

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 Net sewing facility: this facility is dedicated and painting, requires a substantial amount of to the sewing of new nets or to the mending energy. The heating system used for the drying and repairing of used nets. This facility is process requires about 5200 L of oil per month, equipped with an intense lighting system with an average cost of £3,300.00 per month. specifically designed to operate the sewing activities with the highest standards in the field. Net Services Shetland is the third larger energy consumer of Scalloway Harbour. This is due to the large use of heavy industrial machineries for  Net washing facility: this facility is the movement, washing and drying of the nets. dedicated to the periodic maintenance of used nets. Nets used for fish farming require a The organisation is equipped with a water periodic maintenance to ensure integrity and treatment system that is able to purify the cleaning from algae and other aquatic water used during the washing process and organisms after a prolonged period immersion recover any impurity or organism present in the at the sea. Nets are required to be washed and nets. The waste contains residual from previous painted with anti-fouling varnish to reduce the painting process, metals and organic material - growth of organisms that attach to the net all of which is discarded in landfill. The average which can affect performance and durability. waste for each net cleaned is around 2 tonnes The drying process, required after each wash 2 for a net of 2500 m surface area.

HUNTER FISH

Hunter Fish is a fish company located at the north side of Scalloway Harbour. Until June 2011 it was dealing with both fish and shellfish processing. However since then, the activity of the organisation has been reduced to shellfish processing only.

The energy consumption is low compared to other bigger organisations within the harbour, as only small industrial processes are conducted in the premises and especially after the Figure 8 – Hunter Fish reduction of its operation.

A small office with standard electrical appliances is present inside the facilities and used for administrative activities. See Figure 8.

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QA FISH

QA Fish is a fish company located at the north facility used for storing fish and the standard side of Scalloway Harbour. The QA Fish facilities electrical appliance used in the administration are shown in Figure 9. This company deals with office. fish processing and packaging for UK and international markets.

Most of the fish processes are done by hand; therefore no heavy industrial machines are used within the organisation. An office with standard electrical appliances is present inside the facilities and used for administrative activities.

The electrical consumption is relative small in comparison to other organisations nearby. The consumption is mostly from a cold storage Figure 9 – QA Fish facility at Scalloway Harbour.

LHD ICE FACTORY

LHD Ice Factory is an ice producing company The operation of the factory is strongly related located on the east side of the harbour. The to the fishing activity of the harbour, therefore factory has the potential to supply and satisfy the operation is mostly on call and on demand. the ice needs for the entire harbour and the surrounding industrial premises outside The LHD ice factory is a high energy consumer. Scalloway. Figure 10 below illustrates the ice The facility is equipped with two large ice factory. machines that could operate in parallel during a high request of ice. The total ice production of the facility is between 2000 – 7000 t per year.

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Figure 10 – LHD Ice factory plant at Scalloway Harbour.

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DISCLAIMER

While every reasonable precaution has been taken in the preparation of this document, neither the Pure Energy® Centre nor the E-harbour project development partners assume responsibility for errors or omissions, nor makes any warranty or representation whatsoever, expressed or implied with respect to the use of any information disclosed in this document.

Copyright Notice The Pure Energy® Centre retains all copyright and any other intellectual property rights in all reports, written advice, training or other materials provided by us to you. However, the Pure Energy® Centre grants a free licence for use of this report content and material as long as it is duly referenced. The appropriate reference for this report is:

Pure Energy Centre, report written as part of the e-harbour project, project sponsored by the Interreg IV North Sea Region Programme, March 2012, http://eharbours.eu/, http://www.pureenergycentre.com/pureenergycentre/Download.php

WARNING: This report can be shared for as long as there is a reference to the report, the Pure Energy® Centre, the e-harbour project and the NSR. Any content or information available in this document can be shared verbally or in any other form whatsoever as long as duly referenced.

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